Staffing services company Manpower Inc. (NYSE: MAN) withdrew its revenue and earnings guidance for the fourth quarter of 2008, blaming continuing drop in global demand and volatility in foreign exchange. Shares of the company lost $5.18 or 14.23% to close at $31.22.

German reinsurer Munich Re AG on Monday announced that it would buy American International Group Inc.'s (NYSE: AIG) specialty insurer unit HSB Group for about $742 million. Shares of AIG rose 1 cent or 0.62% to $1.61.

Meanwhile, private equity firm Elevation Partners agreed to make an additional $100 million equity investment in the Palm Inc.(NASDAQ: PALM). Elevation Partners already holds a 25% stake in the smartphone maker. Palm rallied 56 cents or 22.49% to $3.05.

European chipmaker Infineon Technologies AG (NYSE: IFX) rallied over 11% on Monday after subsidiary Qimonda received a 325 million-euro ($456 million) lifeline from German state of Saxony and a Portuguese state bank.

The Finance Ministry of Japan said on Monday exports plunged 26.7% from a year earlier. Imports fell 14.4% indicating that domestic demand too remained weak. The world's second largest economy reported that its trade deficit widened to 223.4 billion yen or $2.50 billion for 67.7 billion yen in October. This is for the second straight month that the country has posted a trade deficit, setting the alarm bells ringing as the economy is primarily export driven.

The People's Bank of China slashed its key lending and deposit rates by 27 basis points each from Tuesday. The central bank of China said in a statement it will cut lending rate to 5.31% from 5.58% and the one-year deposit rate to 2.25% from 2.52%.

Ireland's government announced on Monday that it will inject €5.5 billion ($7.66 billion) and purchase large stakes in Anglo Irish Bank, Bank of Ireland Plc and Allied Irish Banks Plc.

European stocks settled in red. The U.K. FTSE fell 81.5 points or 1.88% to 4,249.16. The German DAX and French CAC decreased 1.23% and 2.33% respectively.

Asian stocks finished mixed. The Nikkei 225 rose 135.56 points or 1.57% to 8,723.78. Hong Kong's Hang Seng Index subtracted 505.12 points or 3.34% to close at 14,622.39.

NYMEX Crude oil for February delivery declined $2.45, or 5.8%, to settle at $39.91 a barrel.

Disclosure: Author does not own any of the stocks discussed here.